Himax Technologies’ Strategic Expansion into AI and AR Markets Drives Buy Rating

Tiffany Yeh, an analyst from Morgan Stanley, has initiated a new Buy rating on Himax Technologies (HIMX).

Tiffany Yeh’s rating is based on Himax Technologies’ strategic expansion into the cloud AI and edge AI markets, which is expected to drive significant growth in both revenue and profit margins. Himax is leveraging its established position in the display driver IC market by diversifying into OLED technology and strengthening its presence in the automotive sector, which is anticipated to boost its top-line growth.
Additionally, Himax is poised to be a key player in the emerging AI and AR glasses market, supported by its experience in producing liquid crystal on silicon solutions. The company’s WiseEye solution is gaining traction in the AI PC market, further solidifying its position. Furthermore, Himax’s industry-leading wafer-level optics technology positions it as a sole supplier for significant future projects, contributing to its revenue growth. The non-driver IC business is expected to become a major profit driver, surpassing traditional display driver ICs, which supports the positive outlook and Buy rating.

In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $10.00 price target.